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ARTICLE · 04 AUGUST 2010

Managed Investment Trust Reforms Now Law

Norton Rose Fulbright Australia
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We have previously reported on the various proposals concerning reform of the tax treatment of Managed Investment Trusts (MIT). The two main tax reforms relate to: (i) allowing MITs to make an election to treat gains and losses on the disposal of certain assets as being subject to capital gains tax (CGT) treatment, thereby allowing certain investors in the MIT to enjoy a CGT discount on gains on underlying investments, and (ii) extending the definition of an MIT so that a greater range of funds

AustraliaTax
Peter Norman
Peter Norman
Fadi Khoury
Fadi Khoury
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We have previously reported on the various proposals concerning reform of the tax treatment of Managed Investment Trusts (MIT). The two main tax reforms relate to:

  • allowing MITs to make an election to treat gains and losses on the disposal of certain assets as being subject to capital gains tax (CGT) treatment, thereby allowing certain investors in the MIT to enjoy a CGT discount on gains on underlying investments, and
  • extending the definition of an MIT so that a greater range of funds may take advantage of the 7.5% withholding tax rate that applies to certain distributions to foreign investors.

The Tax laws Amendment (2010 Measures No. 1) Act 2010 provided for the capital account election reforms. This Act received Royal Assent on 4 June 2010. The extended definition of an MIT for the purposes of eligibility for the lower rates of withholding tax for certain distributions to foreign investors was contained in the Tax Laws Amendment (2010 Measures No. 3)

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